I think it would have been worse than it was now. From what I remember hearing (please correct me if I'm wrong) that the price on parts of videogame consoles (and most other electronics) drop 30%/year - but only when they are being manufactured over that year. So (if I understood this correctly) would mean that the PS3 would still be near the same price point that it was at launch, since the price of the various components would not have dropped.
Sony could have had more 1st/2nd party games finished for launch, and looking/controlling spectacularly, which I think might have given the PS3 a more sustained boost from launch through the holidays (I'm assuming that it would have launched November 2007) unlike the sell outs followed by overstock that occurred. However, this would have been offset by the fact that most 3rd party games would have become 360 exclusives in that time........so I don't think it would have helped that much. But any 3rd parties that did decide to multiplat, or make PS3 exclusive games would have had them come out much better, with the extra year.
Also, on a side note, I think that we would still have an HD-DVD battle going on......is this good for Sony? I don't think that it would have been.
